. Energy News .

Oil prices tumble on Greek referendum, Chinese data
by Staff Writers
London (AFP) Nov 1, 2011

Crude oil prices slumped on Tuesday after Greece called for a referendum on its EU bailout deal, raising tensions in the eurozone debt crisis which threatens to hit energy demand, traders said.

The market was also rocked by weak manufacturing data from top energy consuming nation China.

New York's main oil contract, light sweet crude for delivery in December, dived $2.36 cents to $90.83 a barrel.

Brent North Sea crude for December sank $1.84 to $107.72 a barrel in London midday trade.

Oil suffered heavy falls, in line with plunging world stock markets and a tumbling euro, as dealers fretted over a potential Greek default that risks sparking debt contagion and fresh recession.

Greek Prime Minister George Papandreou announced on Monday a confidence vote and a referendum on last week's EU debt deal, taking a political gamble in an attempt to silence growing opposition to his policies.

The news sent shockwaves through markets because an adverse result in either process would scupper the EU deal, which is designed to cut Greece's debt load of over 350 billion euros ($495 billion) by about 100 billion euros.

"The need for a vote of confidence for the proposed eurozone solution in Greece is ... very unnerving for investors and even more so the call for a referendum in January," said oil analyst Bjarne Schieldrop at Swedish bank SEB.

"Further eurozone progress could be put on hold awaiting the Greek referendum," he told AFP. The confidence vote was expected on Friday.

Official data meanwhile showed that growth in China's manufacturing activity slowed in October following a sharp fall in export orders, as US and European economic woes hit demand for Chinese goods.

The official purchasing managers' index (PMI) -- based on a survey of 820 manufacturers -- dropped to 50.4 in October from 51.2 in September, the China Federation of Logistics and Purchasing said in a statement.

A reading above 50 indicates the sector is expanding, while a reading below 50 suggests a contraction.

Oil prices were also falling after US brokerage firm MF Global filed for bankruptcy overnight, following a string of losses from its European public debt holdings.

MF Global's filing made it the first major US casualty of the eurozone debt crisis, and sparked memories of the collapse of US investment giant Lehman Brothers in late 2008 at the height of the notorious global financial crisis.

In a further gloomy development on Tuesday, the yield on Italian 10-year government bonds rose to about 6.2 percent, pressured by concerns that Italy could be dragged further into the region's worsening debt crisis.

"Today's bearish action is all about the eurozone, but helped by MF Global bankruptcy giving flashbacks to Lehman Brothers, even though MF is of much smaller scope," added Schieldrop.

"Rising Italian yields are the clear indication that the latest package to solve the eurozone troubles is not adequate in the eyes of the investors."

Leaders of the Group of 20 developed and developing nations will meet this week in French city of Cannes, with the debt drama expected to top the agenda.

Oil had rallied last week after a breakthrough eurozone rescue deal was clinched in Brussels. But investor euphoria has since waned as governments grapple with the details of implementing the plan.

Related Links
Powering The World in the 21st Century at Energy-Daily.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

EU: Trans-Adriatic pipeline 'promising'
Brussels (UPI) Oct 31, 2011
The Trans-Adriatic Pipeline holds promise for better connecting southeastern Europe's gas infrastructure, EU Energy Commissioner Gunther Oettinger says. Oettinger, speaking Thursday at the Southeastern Europe Gas Forum in Brussels hosted by the developers of the project, said the effort is in line with EU's goals of lessening the region's dependence on Russia for natural gas supplies. ... read more

Japanese urged to wrap up warm to save winter power

Russia: EU energy talks at impasse

California approves carbon cap-and-trade

China warns of winter power shortage

Oil prices tumble on Greek referendum, Chinese data

Aluminum alloy overcomes obstacles on the path to making hydrogen a practical fuel source

Navy Researchers Fire 1,000th Shot on Laboratory Electromagnetic Railgun

Australia posed to enter golden age of gas

Mortenson Construction Builds Its Fifth Wind Facility In Illinois

Chinese Wind Market To Overtake Germany by 2018, Second Only to the UK

Huhne slams green energy 'naysayers'

Wind farm development can be powerful, as long as proper design is implemented

Latin America set on solar energy growth

ONYX Announces Revolutionary "Plug-N-Play" All-in-One Solar Panel

SolarWorld Solar Panels Ready to Power Center Modeling World Advance in Sustainable Building

GE Unit and KGAL invest in 50MW Spanish CSP Plant

Japan restarts first nuclear plant since disaster

Bangladesh signs deal for first nuclear plants

Areva finds 12,300 tonnes of uranium in Jordan: report

Czechs bet on nuclear power for their future

Lincoln Increases Trucking Fleet to Expand Regional Biofuels Service

Animal Farm Powers Village by Alfagy

US Biofuel Production Increase: Fact or Wishful Thinking

Senegal's Wade regrets deaths after biofuels clash

China to launch spacecraft on Tuesday: Xinhua

Major moments of China's rocket launches

China to launch Shenzhou-8 early November

China plans space lab docking

UN climate talks 'no walk in park': S.African president

NASA launches weather-climate satellite

Global warming target to stay below 2 degrees requires more action this decade

Testing geoengineering as a solution to climate change


The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement